Affordable Luxury, I couldn’t imagine buying a $1100 phone, I guess no-one did, back in the day, unless you were a rich freight forwarder., When Nokia and Blackberry still ruled the consumer and enterprise class of customers. However, what Apple did was, create a new ‘class’ of luxury phone, that was expensive yet affordable. People would buy it not because they were just rich freight forwarders, but out of their necessity and satisfactory user-experience.
It’s not like Apple deliberately created a solution to a problem that didn’t exist. User experience on high-end Blackberry and their Nokia equivalent was anything but satisfactory, I did use twitter on Nokia’s ‘Symbian OS’ but we all know it wasn’t even remotely joyous experience.
So here is the conclusion, if you can create an affordable luxury, that offers users convenience as well as satisfactory user-experience, consumers definitely are going to shell out more money for it.